Nova Employees: Their Voices, Their Stories

Filed under: Trans-Pacific Radio, TPR Spotlight
Posted by Ken Worsley at 1:08 pm on Monday, October 1, 2007

EDIT: I have added links to blogs where current and past instructors are discussing the Nova situation. The links are after the ‘more’ cut.

Back on September 20, we asked that any employees of the Nova Corporation who were willing to talk with us about the company’s current situation get in touch. I was surprised at the response we received, and was able to conduct phone interviews with many of them towards the end of last week. We heard from new instructors, long-timers, former employees, and titled instructors.

What follows is their description of the state of the company - their worries, discoveries, fears and predictions about the future. What struck me was the continual mention of an ‘blackout’ on information coming from the management level. The people I spoke with seemed confused and upset that they were unable to get any information directly from the very company they not only work for, but entrusted to have their best interest in mind when they recruited them to live and work in a foreign country. Some seemed unsurprised by this, with one instructor describing communication within the company as having gone from “bad to worse.”

This article is not the place for me to state my opinion, but rather is a forum for instructors to describe what is happening where they’re working.

Thank you to all Nova employees who contacted us and spoke with us. We apologize to all those whose interviews were cut short or not included due to constraints of time and space. We appreciate that you have gotten in touch with us. We also doubt that this will be the end of our ongoing coverage on Nova.

Here are the links to blogs where people are writing about the Nova situation. They’re in no particular order (really, I’m not that organized).

Jeff in Fukuoka has a post speculating on what might happen to teachers if Nova goes bust at his blog, Adrift In the Happy Hills. He also has a good post on Apple that I will comment on when I have time.

When you see the title, “Well, the Titanic has finally hit the iceberg,” you have a good idea of what Sakura_Breeze is writing about at Through the Looking Glass.

A. at Memoirs of a Gaijin has been putting together a string of posts on Nova’s current situation, and providing a window into the world of Western Japan, where I typically only go for funerals and takoyaki (not at the same time).

Shawn’s blog at Let’s Japan is an invaluable source of articles, translations and full-on opinion. How it should be done.

Adelle387 from The Poetist has been in touch and is writing on Nova. She’s blogging over here as well.

Chris Salzberg of Global Voices is one of the best bloggers on Japan there is. His recent post on Nova is a (very) short one, but there are a lot of comments and links to other information.

Gaijin in Japan has a totally out of control Maxim-esque image at the top of the site, which might be a good thing. Even better is the writing. I should have had this done by now…

Brokendrums over at Soju, Sake and Canadian Beer (what do you call when you mix them together?) has posted a bit on the Nova debacle.

Jack sums up the Nova situation with four words: This is horrible shit.

Once you get past the title, the rest of “Jim Jiminy’s jivin’ Japanese journey journal” is much easier to read. It’s good, too.

You really get a sense for what’s going on when the only comment on a post about Nova entitled “The Future’s Not Bright, The Future’s Not Nova” is the dude’s mom telling him he got out at the right time. This company’s so $#*@#* up that even parents get it.

This last one is not a blog, but it’s worth it. Here’ the URL: http://sankei.jp.msn.com/affairs/crime/071001/crm0710012102024-n1.htm

That’s right. Stories about Nova are finally making the crime section of the Japanese media. And this is Sankei/MSN (the first day of their new business partnership, no less). I generally get the feeling that a company’s prospects for finding a (reputable) buyer tend to evaporate once stories start hitting the crime section.

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Pingback by Employees Speak Out About Nova Corporation’s Troubles : Japan Probe

October 1, 2007 @ 4:10 pm

[…] For more shocking details, check out Ken Worsley’s interview with Nova Employees over at Trans-Pacific Radio. [If you are unfortunate enough to be living in a Nova apartment, you’ll probably want to read this discussion about eviction and tenant rights as well.] […]

Comment by John S

October 2, 2007 @ 9:37 am

Does anyone who has seen how badly Saruhashi has run his company actually believe he has the business skill necessary to pull off a buyout?

Comment by Andy V

October 2, 2007 @ 2:42 pm

Well, suppose I accept what TPR is saying, that there was no cash infusion and that there was no takeover attempt (makes sense, I accept it.) That means one of two things:
Either Nova has money stashed away and has been illegally hiding it and not paying its employees on time. . .

or

Sahashi has been gettin loans to pay the employees even if is late.

Both possibilities show that Nova is unlikely to be only a few weeks from death.

Anders Lundquist called AAM’s the night before they were paid and told them they would be paid because of a cash infusion. That happened, they were paid, but there was no cash infusion.

Confusing. Can anyone explain this?

Comment by Ken Worsley

October 2, 2007 @ 3:30 pm

Sahashi has been gettin loans to pay the employees even if is late.

He has. This has been all over the news. Loans with stock for collateral.

Pingback by Nova Nova Nova, geez. « The Poetist

October 3, 2007 @ 12:55 am

[…] Insolvency.  Bankruptcy.  Collapse.  Since Sept. 15 these words have entered - and quite violently at that - my personal vernacular.  So what is going on with Nova anyway?  The question of assets is key.  Most Nova teachers can be divided into two groups: those who think Nova has assets and those who don’t.  I used to be in the first group until recently when I spoke to Ken Worsley (from Trans-Pacific Radio) about the issue.  Because he’s more or less familiar with Nova’s official financial situation he was able to tell me that the company sold all of its assets between April and June of 2006.  There have been countless rumors of buyouts and financial injections, and Ken does a great job of assessing those possibilities in his TPR blog. […]

Pingback by PS « The Poetist

October 3, 2007 @ 1:15 am

[…] October 3, 2007 Posted by adelle387 in Nova. trackback I’d like to reiterate that you can hear me comment on the Nova situation athttp://www.transpacificradio.com/2007/10/01/nova-employees-their-voices-their-stories/ […]

Comment by Phillip

October 3, 2007 @ 8:16 am

I’d like to thank TPR for keeping on top of all of the news. Having very limited written understanding of Japanese makes following many of the newspapers at best extremely difficult. I am a relatively recent arrival as well, having gotten here in July, also after a number of undisclosed and unexplained “visa related” delays. I was originally slated to get here at the end of spring.

I sincerely hope that people who are currently planning to come with NOVA are paying attention to what is going on. The recruitment offices don’t tell you anything, even when pressed. For example, I came shortly after the METI rulings, and was essentially told that it was all overblown, things were running smoothly, etc.

Unfortunately, I didn’t even know or concern myself with the union’s existence until last week. Now I wish I had joined when I got here. They may be the only protection many of us have left against the criminal and corrupt leadership of this Hindenburg of an eikaiwa company.

Comment by Demon

October 3, 2007 @ 12:48 pm

What is the situation with Nova recruiting offices in countries like Australia, Canada etc ? Did they get paid late ? Are they behind in rent ? Are the consulting companies used for recruiting being paid ?

All of the instructors I know understand that they may get last months pay BUT realize the next 2 weeks is teaching for free. AAMs in Tokyo are still telling people fairy stories. They have an obligation to tell the truth. They do not know more than whats posted on forums and sites like TPR. Nova douche-bags cloudy reality yet again.

It is funny because they will be one of the last paid and I dont think they will get theirs :) ))

Poetic Justice is served.

Can someone tell me if you were an investor and you do the math why would you invest in ruins. The brand is FRACKED and the goodwill well how could they have any when they lived on a crash and burn philosophy.

I will say that it will go 2 ways - They are DONE by this Friday or it will be the 17th. (=o=)/ Any other predictions ? Staff are waiting for bankruptcy so they can get their social welfare. How many people will work for free ?

Comment by DeOrio

October 3, 2007 @ 2:49 pm

What is the situation with Nova recruiting offices in countries like Australia, Canada etc ? Did they get paid late ? Are they behind in rent ? Are the consulting companies used for recruiting being paid ?

A very good question, we’ll see what we can find out.

As for investors, I don’t think anyone is going to invest long-term. Anyone who wanted Nova’s locations, students, etc. would do better to just wait until the company went under and snap them up on the cheap. Likewise, buying or taking over the company now would mean probably keeping Saruhashi on in some manner, which no one wants, and taking on Nova’s debt, image problems, (quite rightly) disgruntled staff, and other baggage, then having to immediately downsize and streamline the company. Nova is not Panasonic - it’s hard to see why anyone outside of the current directors would really want to save the brand, much less the company itself.

I hate to keep being a doomsayer - it would be great if some miracle occurred and saved Nova’s employees and customers all the trouble they’re facing, but it’s just really not likely. Best case scenario would probably be for Nova to officially declare bankruptcy, so that employees could go ahead and get unemployment benefits and unpaid wages and have the burden of confusion and doubt lifted.

However, I can see why banks would give short-term business loans against stock: 6-8% returns in 30 days - a good risk/reward ratio.

Demon, I’m inclined to agree with your forecasts, or at least to say those are plausible situations. Being delisted by JASDAQ would be a tough blow to absorb and overcome for an ailing firm.

Comment by Demon

October 3, 2007 @ 3:11 pm

Deorio,

Thanks - nice comments. Yeah the brand is not like JVC, Sony and the like. Doesnt Nova management oops I mean Lone Wolf McQuade -Sahashi have to announce the intentions to JASDAQ any minute now ?

What the hell is he thinking. If he had a master plan it would have showed its ugly face by now. I was told that the staff in branches like in Ikebukuro, Kita-Senju, Matsudo, Soka, Kawaguchi etc believe it will survive. You can lead a horse to water but a pencil must be lead :) What is keeping it alive ? With all the shares he is buying now Sahashi must own nearly 100%.

You watch when it goes down the press will be all over it but UNTIL then heads are still in the sand.

Comment by Phillip

October 3, 2007 @ 3:28 pm

I honestly cannot blame the people who think that things are going to pan out. I would imagine a lot of instructors do. Aside from TPR and JapanTimes, it’s difficult to get any sort of information in English. I know I tried for a couple weeks before my girlfriend found and forwarded me TPR’s site. They have been told nothing, and the assumption is that if something were that terribly wrong that the media would be all over it, or the company would have said something.

This symbolism-laden fax from a couple weeks ago is a red herring to keep instructors punching the clock. I have just about had enough, myself, and honestly the only thing keeping me coming in and probably working for free for the next couple of weeks is how much I care for my students and staff. I know instructors who have made plans to board at students’ houses if/when their landlord gets tired of waiting for NOVA to foot the bills. Since I am in non-NOVA housing, I have offered some of my branch’s instructors places to stay as well.

I really think the language barrier is being exploited here, as is the diminished tendency for the Japanese to complain (when compared to westerners). This is deplorable at best, and likely criminal.

Comment by DeOrio

October 3, 2007 @ 4:35 pm

Well put, Phillip.

They have been told nothing, and the assumption is that if something were that terribly wrong that the media would be all over it, or the company would have said something.

That’s an important point. I think a lot of instructors are under the misapprehension that Nova is a very large company or of more importance to Japan as a whole than it actually is. The unfortunate side effect of this is that some instructors think Nova is going to be bailed out (a la big banks in the ’90s), that government is going to take great steps to avoid having up to 5,000 suddenly unemployed foreigners on its hands, or, at the least, that the story would be making headlines.

Nova is a small ot mid-sized company that is now worth around 3 billion yen on the stock market. 3 billion yen is in the range of what top Major League baseball players make in a year.

Nova is just not as important as it leads its employees to believe. Ultimately, the Nova story is one of human interest and business paractices more than a story of something that’s going to have a huge economic or financial impact on the country.

As for criminal activity, there appear to be some shady things going on. We’ll see.

Comment by Demon

October 3, 2007 @ 5:09 pm

I can understand your point but Nova has been going down the tubes for years. I was one of those teachers that broke the overtime barrier. The moment they cut O/T I knew it was time to leave - 2004. Nova DID have potential to improve in a lot of areas. There were/are good people there. As stated in other posts the Nova model is outdated. If I was a student I would choose an experienced, creative private teacher OR go to somewhere like Gaba where the instructors have no choice BUT to improve the students English. Im not Pro-Gaba but they do offer so many better solutions although you see the same morons as AT,Trainers,AAMs etc.

I wouldnt be surprised if Sahashi already has a new startup company in mind. He will declare bankruptcy, find a front man and PRESTO say hello to AVON - the new Nova.

Would anyone be surprised if he had bought shares in GABA and when Nova goes bust, GABA stock prices increase he cashes out and he and the Kikaku are living the dream while so many staff/teachers are left out in the cold.

That guy has been working on his exit plan for years make no mistake !!

Comment by Ken Worsley

October 3, 2007 @ 5:20 pm

Demon,

Gaba’s recent uptick in share price has been predicted, and though it may continue, is seen to be temporary. Let’s not forget: This is a firm that IPO’ed at 276,000 yen less than a year ago and traded at 104,000 yen today. It hit a low of 79,000 on September 21, so it’s possible that the 20% increase since then is due to market players seeing it as taking the position Nova once had - which isn’t necessarily a good one.

One thing about Saruhashi’s exit plan. If he has/had one, why has it been pulled off in such an incompetent manner? It’s hard to imagine a new firm started by him gaining any trust or doing anything. Nova’s business practices indicate that it does not understand the market realities in its industry. Not to mention, the watchful eye of regulators (METI) would be ready to pounce.

Comment by Demon

October 3, 2007 @ 6:48 pm

http://www.youtube.com/watch?v=cbL21ytJAKM

If this has been posted elsewhere I apologize.

Comment by Phillip

October 3, 2007 @ 7:11 pm

Today, when I went to work, the accordion gate to my branch was locked. I immediately accepted that what I feared had come true, then the branch manager ran up, apologizing that she was late. Three weeks ago, my assumption would have been that she slept in. Not anymore.

Comment by DeOrio

October 3, 2007 @ 10:27 pm

Demon, I’m not sure what Gaba’s current incarnation is like, but a couple of years ago, it made Nova look like the ideal school - smart-looking, but useless, even offensive textbooks. Computer drills that were so bad and irrelevant that even low-level students could pick it out, a certain number of instructors whose English was nowhere near native, and the kicker: frequent underpayment or non-payment of wages.

Add to this outright lies about the contents of contracts in addition to absurdly low hourly wages, no pay for no-shows, and numerous lies to their customers about what they were actually receiving.

On the whole, it seems to me that now, in its death throes, Nova is dropping to the level Gaba showed when it was no going out of business. The only things going for Gaba are the sharp ad campaign and the nice-looking schools.

But. . .
Weird cultish vibe, dishonesty, incompetence. . .
Maybe Saruhashi would fit in well.

Comment by Demon

October 3, 2007 @ 11:09 pm

The Eikaiwas are all the same Im just using Gaba as an example based on first hand experience of both. Tarred with the same brush as they say.

FOOD FOR THOUGHT

If everybody called in sick they would still be entitled to their pay. Go to a doctor claim stress or something find a way to unofficially leave without resigning and when the company files for Bankruptcy you can still claim your unemployment benefits.

People with holidays have something to use but something to lose after Friday.

Comment by DeOrio

October 3, 2007 @ 11:41 pm

Some Nova instructors have told me they’re doing something akin to that: showing up only every third day and calling to toppatsu on the other days.

Comment by Demon

October 4, 2007 @ 10:01 am

This is a classic

http://www.japanprobe.com/?p=2845

Comment by Phillip

October 4, 2007 @ 2:57 pm

That brightened my day, Demon. Thanks for sharing.

Comment by Sebastian

October 4, 2007 @ 3:13 pm

Just heard Nova in Saitama Soka is 3 months behind in rent.

Comment by JS

October 5, 2007 @ 1:48 am

Demon, nice article. I like this part:

“Weekly Playboy says it repeatedly contacted NOVA for a comment about the situation but was constantly told that a reply would be forthcoming “tomorrow.” Each time tomorrow became today, the response was identical. Phone calls to the company always got a busy tone. After 5 p.m., the engaged signal was replaced by a recorded message.”

So…was it a busy tone or was it ‘tomorrow’? Guess the guy couldn’t make up his mind which one he wanted to hear.

Comment by Phillip

October 5, 2007 @ 8:31 am

My guess is that, since the term phone call was used separately from contact that it suggests the constant “tomorrow, tomorrow” replies were coming from e-mail, fax, or personal correspondence.

There’s probably a bit of exaggeration and sensationalism at play in this whole story, but, to be honest, the “tomorrow, tomorrow” reply is basically identical to what I’m hearing on the inside, so I don’t find it too hard to believe.

Comment by Demon

October 5, 2007 @ 11:33 am

Hi Guys - what happened to WHO OWNS NOVA link ?

Hi Phillip - Any news yet ? I have tried contacting an AAM but no answer. No one knows anything. The share price is going down day by day. What are thoughts on the Nova teachers being paid on the 15th ?

Do you think it will drag out that long ?
Will it come to the 15th and then Sarauhashi puts his hands up and says MY BAD MY BAD ?

Comment by D

October 5, 2007 @ 11:41 am

This is an email I received on Oct 1:
“We have heard from our staff in Japan that the salaries that been delayed over 12 days for all instructors were finally paid last week.
“Having said that, my boss in Japan says the financial situation is still extremely serious. In addition, at the moment we do not have housing that we can set up for instructors who would be arriving in October.
“I am now asking you to seriously consider whether teaching in Japan with Nova is what you still want to do, and if so, I am asking that you delay to a November 13th departure.
“I will have one of my staff follow up with a phone call to you today regarding this matter and ask you whether you are going to delay to November or withdraw completely, but if you want to call me personally to discuss this matter further please do not hesitate to do so.”

And this one I got on Oct 3:
“This email is to serve as the latest update I received this morning from Nova’s personnel staff in Japan who are handling your application and arrival.
“Unfortunately, due to Nova’s current financial situation in Japan, our accommodation section there, have been unable to secure ANY housing for instructors arriving into Japan in October.
“I have been advised that your options now are as follows:
“1) Delay your departure to a future date in November until matters are satisfactorily clarified;
“2) Withdraw your application with Nova Group, and cancel your travel plans; or
“3) if you would like to continue with departing in October, then you will need to find your own housing, provide us with the address information and closest train station, and then our allocation staff in Japan will place you in a Nova Branch within a commutable distance from the housing you set up for yourself. We will need this housing information by no later than Monday, October 8, 2007.
“Please reply back to this email TODAY or call us, to inform me of which option you will be going with, and I am sorry to be the bearer of bad news once again, but as promised, I wanted to keep you abreast of any and all new updates that are received into my office.”

I think this speaks for itself?

Comment by Ken Worsley

October 5, 2007 @ 12:06 pm

Demon, I’ve moved the post over to Japan Economy News: http://www.japaneconomynews.com/2007/10/04/who-owns-nova/

Where it can be dealt with better instead of having it on two sites…

Comment by Demon

October 5, 2007 @ 6:14 pm

Any news ? I heard from another forum they didnt submit the report to JASDAQ.

Comment by DeOrio

October 5, 2007 @ 11:11 pm

Since trading closed today, we haven’t heard anything. We might not until Monday or, more likely, Tuesday when Nova is actually delisted (assuming the were unable to file a report with JASDAQ containing a satisfactory explanation of what’s been going on.)

Comment by Phillip

October 6, 2007 @ 12:26 am

Sorry for my delayed response. I worked from 1:20 to 9:00 Japan time today. Not a lick of news. No word on the report to JASDAQ, no faxes laden with weather symbolism…nothing. I’m almost glad that I am calling in to go to the doctor tomorrow for a potential hernia.

Comment by DeOrio

October 6, 2007 @ 12:53 am

JASDAQ rejected Nova’s report and gave them until the 19th to resubmit, having spelled out which securities laws Nova needed to comply with in their rejection.

Here’s the JASDAQ report.

Comment by Phillip

October 6, 2007 @ 7:59 am

Pathetic. In November, they will put “someome” (read: Sahashi or a crony) in charge of business practices (read: ripping off their students and instructors) and releasing information on time (read: not releasing information AT ALL).

For over two weeks now, there has been a general radio silence from the corporation to its workers, both foreign and Japanese. Now, as I mentioned earlier, the rumormill amongst some of the Japanese staff has reports of Sahashi visiting Fukuoka last week to tell the head of staff for Kyushu that everything would be ok. This coincides with the time period where he was reported MIA by various Japanese media sources (about four days ago, now).

I would laugh at this farce of a corporation if I wasn’t about to be out of the job.

Comment by Ken Worsley

October 6, 2007 @ 10:14 am

Philip,

JASDAQ replied to Nova yesterday: http://www.asahi.com/kansai/news/OSK200710050081.html

and I blogged it last night over here: http://www.japaneconomynews.com/2007/10/05/jasdaq-rejects-novas-report/

Pingback by Global Voices Online » Japan: NOVA on the brink of collapse

October 21, 2007 @ 1:01 pm

[…] Stories in English of the ongoing NOVA saga have featured regularly in blogs and discussion forums over the past couple months. As NOVA finally began to actually cancel classes last week, however, Japanese students and staff also joined in the conversation. Blogger Bun writes: 最近、ブログでノバ生徒のカミングアウトが多発!? 大声で「NOVAに通っています」と言えないのは、 悪徳会社のせい?はたまた英会話能力の無さを自覚しているから? Recently, there have been a lot of cases of NOVA students coming out in their blogs ! ? Maybe the reason that people cannot proclaim in a loud voice, “I attend NOVA”, is that the company is so corrupt? Or is it because they sense their lack of proficiency in English? […]

Comment by Scott Kirwin

May 31, 2008 @ 10:40 am

I worked at Nova from 1992-97 in Kansai, and I just learned today Nova’s fate when I was researching this post on my American Streamline nightmares. It’s a light post, but discovering that Nova went… well, nova, last year is unfortunate. While I was never a fan of the company, I remember seeing what happened to teachers when other schools went bankrupt when I was there. To see that happen to Nova teachers just shows that things haven’t changed that much since I was there in the 1990’s.

As for the continued recruiting… No surprises there either. I can’t recall the names of some of the firms that went under back then, but I seem to recall that they did thing: went under suddenly, left students stuck with worthless lessons and teachers without paychecks. Meanwhile the recruiting offices acted like nothing was wrong. I’m not sure if it was just the tail of the dinosaur twitching after having the head bitten off, or something more sinister.

Either way, my heart goes out to those who got screwed.

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